Impact of Crop Insurance on Technology Adoption and Investment in Agriculture: Empirical Evidence from Odisha, India

This study examined the impact of crop insurance on farmers' technology adoption and investment behaviour, using data from 120 insured and 120 uninsured farmers in the Jagatsinghpur and Kendrapara districts of Odisha. The results showed that insured farmers generally had larger farms, though over 90 per cent of respondents remained marginal or small. Most farmers accessed loans through cooperative banks, with insured farmers showing a preference for these institutions. Crop insurance benefits included increased awareness of government schemes, financial support during adverse conditions, and protection against crop failure. However, frequent climatic risks discouraged farmers from making significant investments. Using the Difference-in-Differences (DiD) method, the study found minimal differences in agricultural investment between insured and non-insured farmers. A demand-driven strategy focused on young, educated farmers and enhanced extension services could improve adoption and resilience in the face of adversity.